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20 Common Law Factors Rev Rul 87 41 1987 1 CB 296 ISSUE In the situations described below are the individuals employees under the common law rules for purposes of the Federal Insurance Contributions Act FICA the Federal Unemployment Tax Act FUTA and the Collection of Income Tax at Source on Wages chapters 21 23 and 24 respectively subtitle C Internal Revenue Code These situations illustrate the application of section 530 d of the Revenue Act of 1978 1978 3 Vol 1 C B 119 the 1978 Act which was added by section 1706 a of the Tax Reform Act of 1986 1986 3 Vol 1 C B 698 the 1986 Act generally effective for services performed and remuneration paid after December 31 1986 FACTS In each factual situation an individual worker Individual pursuant to an arrangement between one person Firm and another person Client provides services for the Client as an engineer designer drafter computer programmer systems analyst or other similarly skilled worker engaged in a similar line of work Situation 1 The Firm is engaged in the business of providing temporary technical services to its clients The Firm maintains a roster of workers who are available to provide technical services to prospective clients The Firm does not train the workers but determines the services that the workers are qualified to perform based on information submitted by the workers The Firm has entered into a contract with the Client The contract states that the Firm is to provide the Client with workers to perform computer programming services meeting specified qualifications for a particular project The Individual a computer programmer enters into a contract with the Firm to perform services as a computer programmer for the Client s project which is expected to last less than one year The Individual is one of several programmers provided by the Firm to the Client The Individual has not been an employee of or performed services for the Client or any predecessor or affiliated corporation of the Client at any time

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